Up to a million Canadians would struggle to cope with a 1 per cent rise in interest rates with 700,000 at risk from even a 0.25 per cent rise

January can be a tricky time for household finances with budgets overstretched by holiday spending on top of regular expenses including mortgage payments.

But it seems that many Canadians are unsure of their credit score and almost half would struggle with a financial emergency.

A study commissioned by Refresh Financial and conducted by Leger, called ‘Credit In Canada’, has found that 49% of Canadians do not have savings for an emergency.

That means that 35% of Canadians say they would take out a small loan to cover an emergency or pay for it on their credit card.

Those who say the live paycheck to paycheck make up 53% of respondents and among this group, 43% would rely on a loan or credit card for an emergency.

1 in 5 of all respondents said they are struggling to get by even without an emergency and 14% have found themselves in a dire financial situation, such as filing for bankruptcy or having something sent to collections.

"Unexpected financial hardships and emergencies can affect us all. It's not a matter of if, but when… it can happen to anyone," states Refresh Financial CEO Michael Wendland. "This study shows just how many Canadians are under-prepared for financial emergencies when they arise."